Today, one of the stocks many retail investors were watching closely was Beachbody (NYSE:BODY). Indeed, BODY stock has been on an impressive ride this week, gaining nearly 15% since Wednesday afternoon. Today, BODY stock has managed to hold most of those gains, though this growth stock closed down 2.3%.
Beachbody’s business model is one focused on personal health and wellness. The company offers a range of fitness and stress reduction programs. Additionally, the company sells a range of nutrition products for its loyal customer base.
This digitally focused business has done a good job of providing recurring revenues over time. Beachbody has seen impressive growth, and investors have increasingly latched onto such plays during the pandemic.
Of course, with concerns about the pandemic elongating given the rise of the delta variant, this stock has seen even more interest of late. Accordingly, this is a stock that has been a trending one in recent days, leading to intense momentum around BODY stock.
Let’s dive into this key catalyst for a moment and discuss what this means for investors.
BODY Stock Surges on Significant Investor Interest
The month of September is proof that investors are still eagerly moving onward and upward from the lows of March 2020. Specifically for momentum investors, we are seeing a snowball effect with popular stocks, especially those gaining ground on social media. In other words, if investors like a stock, it is likely to simply keep going up.
Such appears to be the case with BODY stock. We touched on this phenomenon earlier today, with BODY stock taking the No. 5 spot among the top-10 tending stocks on Reddit today. Mentions have skyrocketed, though they actually remain much lower than yesterday’s impressive spike.
The key question with Beachbody many momentum traders are asking right now is how long this can continue. Sure, there are catalysts that could take BODY stock higher over the near term. However, many companies have seen valuations balloon to levels that may not be sustainable.
For now, I’m on the sidelines with respect to this momentum play. However, BODY stock has found its way onto my watch list with this recent price action.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.